Layoffs at Faraday Future signal a dark time.
Embattled automaker Faraday Future is on the ropes with its chief financier, China-based Evergrande, resulting in a a new round of layoffs and salary cuts.
According to The Verge, the company plans to slash salaried and hourly salaries by 20 percent, reduce CEO Jia Yueting’s salary to $1, and other measures. No word on how many employees will be laid off.
The investment from Evergrande is at risk due to its complaints of Faraday Future’s wasteful expenditures and missed targets, which $800 million spent through the second quarter of 2018 with $700 million in remaining reserves withheld.
Now, Faraday Future is looking to scrap its deal awarding 45 percent of the company to the firm, accusing it of poaching intellectual property and trying to seek too much control.
“Accordingly, the only reason ‘FF is trying to get out of the deal with Evergrande’ is because Evergrande has failed to live up to its end of the bargain and make the payments it agreed to make,” said Faraday Future in a statement. “This is a matter of basic, common-sense fairness — Evergrande shouldn’t be permitted to withhold the funding and simultaneously prevent FF from accepting alternative financing or investments.”
Let’s see if Faraday Future will attract new investors despite its tumultuous history with creditors.